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Penn Pledges $100M to Philadelphia Amid Local Tax Debate

Students have for years called on the wealthy private university to make payments in lieu of taxes, called PILOTs, to the city. Recently, faculty and staff members joined them. The $10 million per year outlined in Tuesday’s pledge is lower than the estimated $40 million per year that PILOT advocates requested, and significantly lower than what the university would owe the city if it were subject to property taxes.

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Penn announces $100 million, 10-year gift to Philadelphia school district

The Penn for PILOTS movement, as well as other organizations including Jobs for Justice, had estimated that if Penn paid property taxes on its holdings, it would owe the city about $100 million a year. The groups proposed that Penn pay 40% of what it would owe, or about $40 million annually. It also proposed that all the money go into an educational equity fund dedicated to the school district. … Crediting the “power of mobilization” for the gift, Penn for PILOTS, in a statement, said that “the chronic underfunding of the Philadelphia public schools cannot be resolved with a limited commitment of ten annual payments; it requires a system of public finance that ensures that the city’s wealthiest institutions pay their fair share every year in perpetuity.”

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